re: Hedge fund manager Daniel J. Arbess calls for direct money printing to Treasury

quote:

---

This would be a more honest way to pay for government expenditure

---

agree

quote:

---

rather than to pick winners and losers

---

But do you have any concern that funding the treasury this way could lead to even bigger stimulus packages in future economic downturns instead of across the board tax cuts? Which inevitably involves a lot of picking winners and losers. Or do you think this method wouldn't affect the ratio of tax cuts to stimulus much? I have little faith that future politicians will collectively vote to give themselves less power and pass on opportunities to play santa clause when they can convince voters it's in response to a "crisis".

quote:

---

subsidize the financial industry while creating odd pockets of asset price bubbles

---

so the argument is that this should only be done the event of a financial crisis? To increase the money supply more quickly via tax cuts, instead of through the banks? At what point would you distinguish staving off a crisis from returning to the standard practice, near zero interest rates, etc, to combat a lagging economy following the crisis, and who would decide that? If it's at the fed's option, then I agree it would likely be a much better method for injecting money into the real economy, but if it's a standing option for congress, that distinction seems suspiciously arbitrary to me.